Impact of the Budget 2012 for individuals
INCOME TAX - From April 2013, the 50p top rate of tax will be cut to 45p
PERSONAL INCOME TAX ALLOWANCE – Raised to £9,205 from April 2013
PENSIONS - Age-related allowances to be removed for new pensioners from April 2013 to be replaced with a single personal allowance. Allowances for those of pension age to be frozen. Automatic review of state pension age so that it keeps pace with increasing lifespans. New single-tier state pension for future pensioners to be set at about £140 and based on contributions. No significant change to pensions relief.
CHILD BENEFIT - Phased out when a household has one person earning more than £50,000. It will fall by 1% for every £100 earned over £50,000. Those earning more than £60,000 will lose the entirety of the benefit.
STAMP DUTY – Immediate new stamp duty level of 7% on residential property purchases of more than £2m. Any such homes bought through companies will pay 15%. And don’t forget - on 24 March, 1% stamp duty tax will return on transactions between £125k to £250k
AVOIDANCE - New general anti-tax avoidance rule to be introduced. We will keep an eye on this!
ARMED FORCES – There were a number of announcements relating to financial support for families of the Armed Forces
There are other blogs addressing the issues for businesses
BBC News Budget Special Coverage http://www.bbc.co.uk/news/business-17372581
For further details on any of the issues covered in this update please contact Deanna Hurst, Partner in Private Client on 020 7583 2222 or email [email protected]